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tv   The Dylan Ratigan Show  MSNBC  May 4, 2010 4:00pm-5:00pm EDT

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>> we've also just learned that the american dream had been recently become an american nightmare for shahzad and his family. after the bank foreclosed on his $200,000 home in shelton connecticut. his last-known address was a working-class neighborhood in nearby bridgeport where investigators spent much of the day today, carting out evidence. neighbors described the accused bomber as quiet, strange, saying he didn't like to come out during the day, jogging, jumping over fences. up until last year shahzad worked as a financial analyst here in new york city. attorney general eric holder saying this man had only one job last saturday, however. and it had nothing to do with wall street. it was entirely revolving around bringing terror to times square. >> make no mistake, although this car bomb failed to properly detonate, this plot was a very serious attempt. if successful, it could have
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resulted in a lethal terrorist attack causing death and destruction in the heart of new york city. >> and joining us now, ej hilbert who worked for eight years as a special agent for the fbi's counterterrorism and counter-intelligence operations. ej, how did they close the dragnet? >> they looked at all the information left behind at the bombing -- >> mote notably what? >> the cell phone information and the information relating to the car sale. it was actually tracked back through craigslist and identified an individual and now you have an individual in custody. >> how do i get from identifying the individual, though, to that air traffic control call as -- think about it. you obviously are as capable as i. he got on that plane, he was on the no-fly list, the no-fly list hadn't made it to the gate in time. he's on the plane, the plane is backing off of the gate, moving on to the tarmac. you've got to be minutes, maybe an hour if there's delays, away from taking off. it's only at that point that the
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phone call comes in from air traffic control saying -- pull the plane over. do you have any insight as to what happened in the final fewer hours? >> what most likely what happened, as soon as they identified the individual and his name, they tried to identify all the indications where he may have been flying out. >> boston, wherever. >> d.c., newark, anywhere in this area here. sometimes the information doesn't get shared immediately. the good thing is, as long as they were still in american fly zone you could have pulled him back. >> so let's say they find the guy, they, as you describe it, they put out the no-fly list, send it to boston, newark, kennedy, it gets in, it doesn't get there in time. are they then checking all of the boarding lists, in other words the they find him, is even though the planes have boarded and left, are they going over the new added names, which is obviously one of his, saying is anybody on any of these airplanes on the pavement one of these people, is that what's happening? >> absolutely. now that they have the name, starting saturday night all the way through, they've been
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checking the boarding lists all the way through to figure out if the individual had left or if he was on plane currently or was about to leave and they put a halt to it. if he had left they'd be working with officials overseas. even if the plane was in the air, they could have turned it around and brought it back. >> speculation to say that somebody -- >> most likely they found it on the flight manifest. as you get on the airplane, they look at who the passengers are, make sure every seat is full. they would have put that back into the system, it would have been flagged. they would have known to pull it off. they don't say it to the pilot on the plane. by the way, you have such-and-such on board. just pull it over, bring it back and the agents do what they're trained to do and go and get the individual off the plane. >> why do these guys always talk? this particular individual, very quick to talk. >> there's a reason this gentleman did what he did. he wants to make a statement. he wants to make a point. if he can't do it with the bomb on wall street or a bomb in
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times square or somewhere else, he's going to make it by talking. you'll see he probably talks even more when he gets his day in court. as he spouts out whatever his belief system may be. >> the director of the american muslim organization of north america. safian, how do you deal with these types of crimes without resulting in racism effectively towards people of pakistani or middle eastern descent? >> you know, how i, how i deal with that? >> how do you suggest it be dealt with? in other words, it's not a natural backlash to this. >> yes, we should calm down, it's thank god nobody got hurt. we all know, all sides spoke today this morning with care and other islamic associations of florida. we all understand what was announced what was going to happen. thank god nobody got hurt.
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thank god that authority was open-eyed and took the car away from the surrounding and the population. and we have to wait to see exactly the motives of, of this kind of act, terrorist act. what's going to happen in our soil. we have to know who's behind it. what's the reasons. then you know, we all should listen to all the leaders around the nation. because it's very important to send a message from the muslim leaders, around the nation. from california, new york, miami, washington, chicago, that we to show that we all -- denouncing all acts of terrorism and to condemn it strongly send a message to the muslims and to the nonmuslims all around the world that we are working closely with our authorities in prevention. and to try to stop any future --
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may allah forbid, any future terrorist acts or terrorist activities. as a matter of fact, we just came from haiti, we put our life in danger for nonmuslims. we went to haiti. we went to katrina, we've been working to save lives. and we are against any, any terrorist attacks from any places in our soil or any americans here or abroad. as clear as it sounds. >> ej, what is your sense of the degree of cooperation from the vast majority of not only islamic leadership in america, but around the world? >> the muslim people around the world, and here in the united states have been helping out dramatically. this is not muslim. this is radical. and i mean, i worked undercover online doing this type of stuff. infiltrating groups that were radical in nature. and the 95% of the groups that i met up with and spoke with, and
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i speak a little bit of arabic and i was able to ingratiate myself to these people were against this whole concept. this is a limited fanatical group and that should be shared. so there should be no backlash to the muslim people or anything of that nature around. this gentleman, either acting as part of a group from overseas as reports say that he was over in pakistan. or working here at home, alone, and communicating online. you know, you don't know what he's involved in at this point. >> a question -- >> i thank you for mentioning. i thank you for mentioning that more even than 95%ûu we are against that -- it's, it has nothing to do with islam. this guy, i think he's an idiot. i think he's trying to just kill people, whatever they are. and he was trying to do this terrorist attack from his own belief. because islam has nothing to do
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with that. believe me, it has nothing to do with that. we are all against it. and we're going to be working with proud, pride, i'm standing here on tv to tell everybody. we are against it and we're going to keep working to prevent it. to prevent more any action against, against our people in this country. >> understood. your thoughts, ej, on mirandaizing, not mir andizing the -- >> it's not our call, we're agents, we go in, we do our job, we identify. you mirandaize them. >> it's the law. >> it's the law. well, he's a naturalized american citizen, guaranteed he needs to be mirandaized. >> thank you very much for inviting me. i want to just say one thing more, you know. that let me tell you something. that the only thing i recommend, strongly, we have to work together. we have to come together.
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muslims, jewish, christians, we have to come together for the health of society, for a stronger nation. we have to work together instead of finger-point against each other. it could be another mcveigh, it could be another bin laden. but for the future and for our safety, for safety's sake, we have to work together against all of these kind of terrorist activities and radicalism. and i'm sure we going to have, we'll prevent any future attacks against our country. >> sofian, we are all in. i can assure you, not only myself but ej and so many others are seeking to draw the bright line between a radical of any kind and any religion. sofian, thank you. ej, thank you. coming up on the "dylan ratigan show" from the gulf coast to the halls of washington, d.c. the oil spill continues to expand again an undersea volcano, 18,000 feet beneath the ocean surface, spewing oil into
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the gulf of mexico. obvious risks to the wetlands, the economy, the political debate. plus, deadly floods forcing thousands to flee their homes in central tennessee. even threatening landmarks like titan stadium and the grand old opry. and critical debate on financial reform. we'll talk about it with senator judd gregg, he's central to the conversation. we look forward to talking with him about transparency in our financial markets in the moments to come. stopping. it's not that hard.
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we're back to mix it up on two of the day's other big
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headlines. the gulf coast oil spill continues its development and a deadly set of floods sweeping through tennessee, specifically nashville. we begin with efforts to stop the oil slick in the gulf of mexico. right now, bp prepping what they claim is a massive containment dome that they hope they can lower nearly a mile into the water and place over the largest of the three leaks. that operation not happening for at least a week. the weather cooperating today in keeping the bulk of the spill offshore. the wind and tides critical variables as to when or if and where that oil ultimately ends up. obviously capping the well will determine how much of it there is. meantime, senate democrats expressing outrage that federal law may limit british petroleum's liability for damages beyond the clean-up to simply $75 million. bear in mind, bp reported a $6 billion profit for the first three months of this year selling oil. they also called president obama's plan to expand offshore
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drilling -- dead on arrival. take a listen. >> some people continue to say that, well, we have to drill, baby, drill. drill, baby, drill, at any cost. we've seen the costs. we haven't even begun to fully realize the costs. >> this as a house panel begins investigating whether the agency charged with regulating offshore drilling, the same people that regulate those mines that we saw, those folks die in not too long ago, the minerals management service. failed to make sure that this oil rig was safe. joining us now, california congressman darrell issa, the ranking minority member of the government reform committee. leading the call to investigate the minerals management service. welcome back to the program. have you launched this investigation on speculation that there may have been an issue on snefd. >> on evidence. not just past performance or past investigation or the nine
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gao studies that haven't been heeded. but also as recently as september 9th when noaa reported that they had unrepaired oil wells around the gulf that were seeping. and yet there seems to have been nothing done. so it's pretty clear that mms, over last decade and a half that we've been looking at various events, isn't changing and won't change without serious reform. >> and specifically, do you believe that the minerals management service not unlike other regulators, financial regulators for instance, is too willing to accommodate the individuals they're supposed to be regulating? >> you know, in 2008, cozy got a whole new meaning when one of the regulators got pregnant at the, we'll use the word hands of one of the lobbyists they were supposed to keep an eye on. it's very, very clear that mms is dysfunctional. and has continued to be dysfunctional. in colorado and right in the
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gulf. even their contract writing has allowed us to lose tens of billions of dollars of revenue and never get it back. today if you asked mms how much revenue they were supposed to get from a particular well, they couldn't tell you. they have to rely on the oil companies to tell them how much they're going to get. >> there's been a specific series of questions about the safety equipment required in the gulf of mexico when compared to the north sea. which has higher standards and different devices that are mandatory if you want to do deep-water drilling in the north sea and are not mandatory in the gulf coast. do you view the failure for mms to mandate that type of equipment as part of this culture of looking the other way? or weak enforcement? >> absolutely. first of all, the fact that they simply said you had to have two shutouts, in other words, redundant system, without specifying one. even after a 2003 report that called into question the so-called deadman switch,
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whether it was reliable. and the accoustic switches not necessarily proven. we're such a large and wealthy country. one in which tens of billions of dollars of money comes in from these resources. that you would think that a large amount would be put into safety standards, safety development. and the legitimate oversite. but just the opposite. we rely on the oil companies to develop and to install these. and we do very will checking, as i said, even when noaa reports there's unrepaired areas and seepage. it appears that mms is simply blind and deaf. >> at the root of the disease, if you will, is conflict of interest among those who are suppose to be in the rule-making body for our largest and most relevant institutions. what do you view as the seat or the root solution to that obvious, and ongoing failure, not just with mms, but elsewhere in our government? >> first of all, i think we need to change the revolving door.
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the ability for people to work at mms one day and very quickly move into industry for double or triple the salary, which happens all the time. secondly, mms can't be all things to all people. it should come out from underneath the department of interior. it should be like the irs, responsible for revenue generation and for reporting. and the department of interior needs to be very, very diligent in protecting our wildlife, our wetlands. and all of our natural resources. they should be as hard on mms has congress has tried unsuccessfully to be for about two decades. >> wouldn't you say that those rules apply to agencies beyond mms? >> absolutely. but i think it's a unique conflict of interest when you're dealing with two critical areas, the safety to the environment and the revenue. this is the second-largest revenue source to the federal government after the irs. so it's very clear, the stakes are high. this is an organization that brings in enough revenue to pale by comparison any procurement
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officer of the d.o.d. this should be the first place that people understand, if you're going to oversee these people, you cannot go to work for them, not a year, not five years, no the ten years after. otherwise it's very clear you're lobbying your own colleagues successfully. and that's what's been happening over there. >> thank you, congressman, i think you should send a memo to the s.e.c., too. i want to bring in democratic congressman charlie mellencon, live from new orleans. if you were to look at the state of play, what can you tell us about the actual state of the slick, damage to the fishing and oyster economy and damage to the wetlands today? >> ant this juncture, we don't have any damage to the economy other than what the expectations might be. the slick is just starting to landfall, as i appreciate it. down the mouth of the river and the chandelier island chain on the outer perimeter of the coast.
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i was in the marshes, called the biloxi marshes today and basically in that region, the booms were going up in anticipation of oil coming in. the problem that we have here is we've got an eternal flow until they get this thing shut down on the floor of the gulf. and i go back to what representative issa said. mms has got as much blame here as bp. their proposal was this was 50 miles out. there would be no failures. all slicks wouldn't get into the coast. well it's 50 miles out, 5,000 feet below the surface, you've got an oil well gushing and we've got potential damage. not just louisiana's estuaries, which we refer to as america's wetlands. but the potential in mississippi, alabama, florida. and if it gets into the loop current, who knows -- >> what resources do you feel are most critically needed right now? >> right now what we're praying
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for is more booms, absorbant booms or regular booms we can put out there. the fishermen in this region are doing a phenomenal job. their biggest thing is they can't get enough team to put out there. a boat after they got half an hour to the site, had all the boom out, they were ready to go. >> so we've got to get there and get it as readily available as quickly as possible. >> congressman, thank you very much. thank you. still i head, our live interview with a man who has barricaded himself inside of his home. he'll join us via skype. we'll talk to him, in the towns square. plus, 1200 volts for 15 minutes of fame. a philly fan's night to remember. it wasn't the philly fanatic that made it memorable. he may have been the memorable.
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how to get tasered at a professional sporting event. ben and his family live on this block. ben's a re/max agent, and he's a big part of this community. re/max agents know their markets, and they care enough to get to know you, too. nobody sells more real estate than re/max. visit remax.com today. the smell of home made chili whatever scents fill your household, purina tidy cats scoop helps neutralize odors in multiple cat homes... keeping your house smelling like it should. purina tidy cats scoop. keep your home smelling like home.
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today's by the numbers, tasers in the outfield? this lovely young fan right here, a phillies fan hopped the fence. what he described as a quote once in a lifetime experience. i bet it was, because in the history of the philadelphia police, they've never tasered a fan on the field. that was, until 17-year-old steven consalvi evaded police for up to 20 seconds running around the field before being brought down on the field -- yes, with 12 to 1500 volts of portable handheld electricity. by comparison, a aaytify batters out 1.5 volts. your toaster uses 110. and a lightning volt, that's 100 million. this the first time in recent
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memory someone has tasered on the field. it happens in the stands more often than you would think. there's an oakland fan back in august, for instance. that's what you're risking when you agitate stadium security, by the way. and consalvi actually called his father and asked for permission to run out on the field. dad said don't do it, but like so many teenagers, he didn't listen and received a shocking conclusion. coming up on the "dr show" porn stars versus pirates. illegal web piracy. >> we in the adult entertainment family love and appreciate our fans. >> but eventually, if no one's willing to pay for the movies we make, they won't exist. plus, in "busted" -- heck of a quote, brownie. with what the notorious former fema director says about the president and the gulf coast oil spill. but first we'll talk with the most crucial lawmakers in the financial refempl debate,
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we cannot allow these reforms to be watered down. and for those of you in the financial industries, whose companies may be employing lobbyists seeking to weaken this bill, want to urge you to join us rather than fight us. >> welcome back, a busy day for financial reform efforts, that is president obama earlier today, calling on lobbyists not to try to gut financial reform. senators could vote as earl will i as today as barbara boxer's proposal that claims to stop taxpayers from footing the bill for future bailouts. sounds good, it will be the leadoff vote in two weeks on proposed fixes. unfortunately in this particular provision, he provision puts it in treasury's lap to pay for financial firms too big to wind down. also on the hill today, the treasury secretary urging lawmakers to impose a 10-year, $90 billion bank tax.
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>> the purpose of the financial crisis responsibility fee is to make sure that a direct cost of t.a.r.p. are paid for by major financial institutions, not by the taxpayer. >> no word on the direct cost of $4.6 trillion in collateral from the federal reserve. but that's a small issue. the treasury secretary and senator barbara boxer clearly very concerned with t.a.r.p. as i mentioned, there's a few other trillion still being paid to the bank business the federal reserve to this very day. not to mention accounting forebearance that allows them to mark their assets at a much higher level than they actual will have and then trade with it in secret. funny how no one likes to mention the not so little-known fact the white house today published a list of the ten most wanted lobbyist loobholes for instance, and a list of provision it is promises to protect from special interests. word is the white house is doing its own lobbying against potentially key amend xts to the
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bill, especially anything that would cause transparency or capital requirements. anything that would shine a real light on the real source of the bailout money. fed, senator bernie sanders amendment to audit the fed. word is that rahm emanual is working with the fed to defeat the provision. left it be found out that the fed is accepting worthless collateral. and the bank shying away from a crucial part of senator lincoln's derivative reform plan. her plan, insanely, transparency and capital requirements for derivatives. already in the bill, it would require banks to spin off their swaps desk, to keep their betting separate. but members of the obama administration, lawmakers, regulators and lobbyists are pushing to get that taken out. the fact is, without a balance sheet there's no point in having swaps. so it's self-fulfilling. senator judd gregg for one called the measure a job-killer. and said, quote, it's a punitive
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exercise aimed at wall street. and here to discuss that and other key issues in the financial reform bill, republican senator judd gregg from new hampshire, the ranking member of the senate budget committee and a critical voice in this financial reform debate. senator gregg it's a pleasure to see you, welcome back to the program. >> thanks, dylan. thanks for having me on. >> why do you think there's as much resistance as there is to the amendments that most centrally would reveal to the american people either the collateral being taken at the federal reserve and given out to banks to go back to work with. or for that matter, would require the banks or any financial institution to be transparent in their purchase of credit default swaps as basically insurance as opposed to being allowed to continue to buy that in private? >> two different issues. on the second one basically the opposition is coming from the regulators, such as the fdic, sheila bair and the federal reserve staff. which points out accurately that
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this would actually weaken our ability to get a strong and sound derivatives market. you can get a very strong and sound derivatives market by pushing derivatives into clearing houses where you have adequate capital, as you call it. margin, liquidity. for the counter parties to participate in the deals and you have a counting house, the guarantor of the deals. and you make sure the clearing houses are themselves adequately capitalized. and at the same time to an extent there's a standardized contract, you pet them own an exchange. this would work while significantly weaken the ability of us to have a strong vibrant capital credit market in this country. and would actually undermine the regulator's ability to stay on top of these various derivative type strunts. >> let's, you would, you took a long time with that, you just --
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>> the most complex. >> and its most simple level, what it is, is insurance, where one company, an orange grower or somebody who is dealing with heating fuel, is buying pricing insurance for price volatility, to sell heating oil in maine or oranges in florida. it's an insurance for pricing volume filth for an auto parts maker, who wants to have a predictable price for parts and it's the thing where the abacus prospectus was formed, the synthetic ceo that was paid off by the u.s. taxpayer. again what's not clear to me, whether it's you saying or sheila bair saying it or anybody else saying it, why is it that this needs to be done in private? why is it that it needs to be done without collateral. why is it that the insurance regulators railroad insurance regulators are not forcing this into public.
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i guess what the reason that politicians refuse to make this public, because it will reveal that there is a $600 trillion leverage against the balance sheet of this country, that they don't have the capital to post for. and just like audit the fed, our politicians are hesitant to reveal to us the fact that the banking system, in some cases, leverered using credit dwee fault swaps by as much as 33,000 to one, according to goldman sachs and bank swap. >> as you move the derivatives on to clearing houses you'll answer the questions you raised. one you'll get transparency. and second, you will get collateral behind the counter parties, liquidity and margin will have to be posted. what happened in the aig situation was that basically the only thing standing behind the insurance contract, as you described it, and there are variety of different contracts
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here. was the good name of aig, which turned out to be not very good. so when you put these items on a clearing house, you address that swash specifically. as they me great them other to standardized products, to an exchange-traded goal, you take out all the questions of transparency here. that can all be done, under the bill that i support, under the dodd bill as its protectly structured. without the sfgs on moving out the swap desk. the problem with moving out the swap desk is you create an instability in the system, which is very significant and that's why people like the fdic chairman and the people at the fed are concerned that you actually undermine the safety and soundness of the derivatives activities. >> i want to run a couple of other amendments past you. too big to fail seems to be
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gaining some most up, from senator dorgan and tom kaufmann. where do you stand on that? >> we're about to of presented on the floor a very strong resolution authority, which is the too big to fail issue, the joint agreement between senator shelby and senator dodd. >> no, that's not what that is. the speech that was made a couple of years ago didn't happen. i have a sampling of your comments, made at the time of the t.a.r.p. and you like republicans and democrats who claimed it would be dealt with, seemed to have amnesia. take a listen. >> this is not money out the window, we're buying assets and we're going to resell those assets and we're probably going to make some significant dollars. people will not be allowed to game the system. there will not be golden parachutes. we have structured this agreement so we're going to work very hard to make sure that
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foi foreclosures do not occur. we'll have strict and transparent oversight of everything that happens here so that the american public, the american taxpayer and the investment community will know what's happening. >> just on the issue of asset recovery, we're $4.6 trillion from the federal, the tarp is only 10% and you're saying we're going to get asset recovery. we're told we're going to get transparency and the language 70% -- >> dylan, you cannot misrepresent the facts this way. you cannot misrepresent the facts this way. the fact is you're talking two different groups here. i was speaking about t.a.r.p. t.a.r.p. was the money that went out to stabilize the financial industry. >> what about the $2 trillion from the federal reserve? >> dylan, do i get to speak on your show or not? >> yes. >> you've just run a whole series of clips that are, and then you've misrepresented the
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facts. the facts are simple. we put the money out to the banks to stabilize the banks, we got stock in those banks. almost all that money has come back and the taxpayers have made close to $20 billion. of interest and dividends on those stock repayments. so we've done pretty well under t.a.r.p. that is not the fed number. the fed number should not be merged with that number and you ought to be accurate in your facts, it's a total misrepresentation what you just said. you should get it right for your listener's sake. >> this is a quote from neil barovski, an inspector-general of the t.a.r.p. here's the quote, we need to temper or be realistic about our expectations. a dollar for dollar return is just highly unrealistic. he's talking about the t.a.r.p., exactly. i, however, look at the banking system in which one that if i've allowed to take collateral and then oom able to get back from
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the federal reserve cash that i can go out and work with and you don't want to reveal to me as our government what that collateral is. i don't see what fact i'm misrepresenting. i'm questioning you are representing the facts accurately. when you tell the people that this money has been paid back or will be paid back. because i don't see any evidence of that whatsoever. >> the t.a.r.p. money put out to the banks has been paid back with interest and dividends. the only money that hasn't come back is the money that was put out to aig and the car companies. >> i'd like to get the money back from the car companies, i advised on not doing that to begin with i this ink if you'll ask mr. barofsky, as to when that was put out, you'll find his aim anne to be that fact. now the feds act to basically
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use its capacity to put liquidity in the system. the fed has put about $2 trillion into the system, independent of tarp money. that money is also recovered by the fed. they intend to recover it all. athey expect to recover all of those dollars. >> we look forward to seeing the recovery and i appreciate the correction, thank you, senator gregg. up next, eric denalo, former new york state inspector of insurance. has an idea how banks use them to lever up their balance sheets, we're back with commissioner denallo right now. i honestly don't know whether i'm talking to you now or not because of the music. a lot of wr where you least expect it. like in here. this detergent has this much cleaning ingredients. the rest is water. but with tide, you get more cleaning ingredients --
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you saw the interview with republican senator judd gregg who said the derivative proposal by blanche lincoln goes too far. it would -- he also says that the t.a.r.p. money has been paid back, despite the fact that t.a.r.p. special inspector saying it is unrealistic for any of us to get dollar for dollar back and that doesn't even integrate in the federal reserve. but apparently some of our politicians are in denial about that. joining us now is eric denallo, a former new york state superintendant of insurance and a current candidate for new york's attorney general and an
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expert in the area of credit derivatives. has the money been paid back? >> well some of the money has been paid back. certainly what it took to bail out aig, the investment banking side of aig, not the insurance side, has not been paid back. and that's because congress permitted these institutions to sell psuedo insurance, psuedo securities, psuedo banking products. at a completely unregulated rate. right before the abrogation of glass-stegall. before putting in a law that permitted to us sell derivatives, not just for hedging purposes, but for substitutions for core financial products. you couldn't do that, now you can sell them for as much as you want. the biggest sizes. and congress refuses to go back and look at what they did with those laws. and i don't understand why. >> is it because they know that it will be revealed that they created a giant ponzi scheme. and that bank profits are in fact a tax on capital on this country as they sell credit cards to people while borrowing
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at zero percent and trade derivatives where they assign the risk of those derivatives to the american people and the banking system has been converted into a giant extracting machine from the american people as opposed to a lending machine? >> they permitted what used to be institutions that did have the backup of the states and the federal government, right, insurance companies and commercial banks that had the backing of government, to go off and use that base as a leveraging. as an activity for hedge fund activity -- >> 33,000 to 1 at goldman sachs. >> you get 33,000 to 1 by using your banking base, taking derivatives which allow you to sell products at a huge, huge, risky leveraged position. and you're always guaranteed, because the american public is insuring those activities. that's what glass-stegall stopped. our ancestors understood that and they brought down that wall and let them run amuck with derivatives. the worst part of what the white house is facing are the
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lobbyists are seeking to preempt to stop attorney generals from being able to enforce the laws as they did so extremely well over the last eight or ten years. >> so basically you avoid eliot spitzer from ever doing that again. >> you would avoid eliot spitzer, andrew cuomo, ag blumenth blumenthal, all of those who steppeded into the vacuum and protected policy-holders, because washington was completely asleep. those very people would be preempted if the lobbyists get this loophole that the white house is concerned about. >> in the face of millions of jobs lost, deprived pension earnings for years as the fed bails out the banks. underwater homes that people like senator judd gregg and others still refuse to actually address the underlying problem of glass-stegall, the separation of banking, the separation of trading and actual requirements? are they embarrassed because they -- >> part, i think there's part embarrassment and part of a lack
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of understanding that derivatives are not a substitution for financial products. they're a way to hemming. they're always meant to be -- >> they're an insurance product they're a substitution for what you sometimes can't get to be able to insure against certain activities. but what's happened in this country and across the world is they've become a substitution for core financial products. and my attitude is let it go overseas -- >> let the french taxpayers pay for it. >> that would have been great the first time. we pass the laws because some people convinced congress that if we didn't, we wouldn't modernize, right? the commodities future, modernization act. we had to come into the 21st century and sell derivatives in this way and we modernized ourselves into an ice age. >> i'm going to leave it right there. i couldn't agree with you more. eric dinallo would like to be the attorney general of new york, we could do worse, i suppose. up next, a live interview with a man who is protesting his foreclosure by barricading himself in his house. it's him versus the banks and
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police and it's in today's "town square." and then on "hardball," chris matthews talking to former fema director, michael brown, about his statement that president obama wanted the gulf coast oil spill to happen. [ crowd cheering ] [ male announcer ] competition... it pushes us to work harder. to be better. to win. but sometimes even rivals realize they share a common goal. america's beverage companies have removed full-calorie soft drinks from schools, reducing beverage calories by 88%. together with schools, we're helping kids make more balanced choices every day. ♪
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we're back in the "town square." joining us an ohio man who is fighting back against foreclosure. keith saddle ever refusing to leave his home of 20 years, he and five others have barricaded themselves. the big banks aren't working for the american people and keith joins us with a few of his
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friends from inside his home today via skype. keith, how are you? >> not too bad, actually, dylan, thanks for having us. >> how do you feel about the fact that the u.s. government decided to provide forebearance and full accounting relief to the largest banks in the country so they could effectively misrepresent the value of all of their assets while not marking down any of the principle on any of the homes in this country that were funded by fraudulent loans created by the banks? >> well it sounds like a sweet deal for the banks, but obviously for those going through foreclosures and like myself, it kind of stinks. we're not getting bailed out, the banks get bailed out and homeowners are losing homes and being put out on the street. >> why the decision to go down the path that you've chosen, here? >> well because many people, including myself have tried all
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the avenues available. the loan modifications, trying to plead with the banks. we've gone through -- and call for a moratorium -- >> it seems that we lost him. but again -- unique and unusual perspective on the issue. again, if you want a better understanding of it, we'll do that tomorrow. i guess i've got him back for another 30 or 40 seconds here. the police giving you a hard time? >> well, i mean basically they're saying they're coming. they're trying to portray us as bobby trapping for them and nobody here is armed. we're not coming out of the house until they call for a moratorium on foreclosures, evictions and foreclosures. >> understood. keith, a pleasure. thanks for sharing your story with us and thanks to your friends who obviously join you
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on skype. that does it for us, i'm dylan ratigan. up next, "hardball," chris matthews picking things up. stop the plane. let's play "hardball." good evening, i'm chris matthews up in new york leading off. we got him. faisal shahzad was minutes away from taking off for dubai when therl authorities pulled him off the plane at jfk. shahzad is a naturalized american citizen. he was born in pakistan and was charged today with five counts in the times square incident. including trying to explode a weapon of mass destruction at the top of the show. tonight, who is this man? who is he working with? and how close was he to getting away with it? and what we know is there was a pakistan connection, shahzad traveled there last year and trained at a terror camp. and today, pakistani police arrested as many as eight people
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suspected of helping him. what has u.s. officials worried, the fact that a lone wolf, an american may have somehow joined up with international terrorists bent on killing other americans. one thing you can be sure of, the right-wingers, the rush limbaughs, the ditto-head tea party crowd won't praise the government for catching faisal shahzad. the blame obama first gang will try to find some way to hold the president responsible for the fact that an act of terror was attempted. and remember this guy? >> i want to thank all -- and brownie, you're doing a heck of a job. >> brownie is now doing a heck of a job criticizing president obama about delaying action as he put it on the gulf oil spill in order to stir up what he says is opposition to offshore drilling. what will the right think of -- what will they think of next. and three cheers for people who have been maligned daily by the

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